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Varian Acquires Endocare and Alicon, Expanding Cancer Care Solutions Portfolio
Tuesday 11 June 2019

11 June 2019 - US-based oncology company Varian (NYSE: VAR) has acquired Austin, Texas-based Endocare and Hangzhou, China-based, Alicon, to expand its portfolio of multidisciplinary integrated cancer care solutions, the company said.
Endocare is a provider of hardware and software solutions supporting cryoablation and microwave ablation, and Alicon, a leader in embolic therapy for treating liver cancer in China.
These acquisitions provide Varian with a leading position in the high-value interventional oncology segment, which is expected to grow from approximately USD 860m in 2019 to over USD 1bn in 20221.
Varian will leverage the existing product portfolios of both companies as well as the active R and D programmes powered by teams in Austin and Hangzhou.
Endocare's lead product is the Cryocare CS System, a fully integrated planning, placement, and treatment system designed to simplify cryotherapy. 
Cryoablation therapy is a specialised type of cryotherapy for the minimally invasive treatment of a wide range of cancers, including the prostate, kidney, and lung as well as liver metastases and palliative intervention.
Alicon's lead product is Caligel, which are calibrated resorbable gelform particles commonly used as an embolic agent in China for treating liver cancer. Alicon has an integrated R and D, manufacturing and commercialisation infrastructure, with over 1,000 major hospitals in China using the Alicon solution to treat 200,000 patients annually.
Varian is financing the USD 185m purchase price using cash and proceeds from borrowings.
Endocare and Alicon generated combined revenue of USD 30m in calendar 2018.
Varian expects the aggregate of these transactions to have an immaterial impact on fiscal year 2019 financial results, and the combined interventional oncology platform to be accretive to GAAP and Non-GAAP earnings per share in fiscal 2020.
Varian is in developing and delivering cancer care solutions. Headquartered in Palo Alto, California, Varian employs approximately 7,000 people around the world.
Date Published: 11/06/2019
Target: Endocare, Alicon
Country: USA
Deal Size: 185m (USD)
Sector: Pharmaceuticals
Type: LBO
Financing: Cash
Status: Agreed
Buyer: Varian